Motor carriers commonly structure coverage with a primary auto liability policy at one million dollars, the federal minimum for most freight, with excess layers above it. Larger fleets build towers reaching well into the tens of millions.
Excess carriers typically have no defense obligation but retain association rights.
Alternative Names:
Trucking Excess Layers, Motor Carrier Excess Coverage
Why it Matters?
Because the federal minimum is one million dollars and catastrophic trucking verdicts far exceed that, excess participation determines whether a serious case can resolve. Placing excess carriers on notice early is essential, since they will not commit funds without having monitored the defense. Small carriers operating at minimum limits present the opposite problem, where inadequate coverage makes the corporate defendant's assets and any broker or shipper the only remaining sources.
Frequently Confused with
Related terms
Frequently asked questions
What are the federal minimum limits for motor carriers?
When should excess carriers be notified?
